Gap Insurance: Who are the Best Providers in the US?
Gap insurance can provide an added layer of protection for your vehicle, especially if you lease or finance it. It covers the difference between the actual cash value of your car and the amount you owe, which can be significant in the event of a total loss. While most major car insurance companies offer gap insurance, it can be challenging to determine which one is best for you. In this article, we’ll explore some of the top gap insurance providers in the US.
Travelers Insurance: Affordable Coverage with Fewer Complaints
Travelers Insurance is our top pick for the best gap insurance provider in the US. In general, the company’s premiums are affordable, and it has fewer customer complaints than the others. Travelers clients can add loan/lease gap coverage to their policy for approximately 5% of the car’s comprehensive and collision premium. However, only vehicles purchased directly from a new car dealer are eligible for coverage.
The Hartford: Best for AARP Members
The Hartford is another excellent option for gap insurance. This coverage must be added to your insurance policy within the first 30 days from the time you purchase the vehicle. The Hartford is especially suitable for AARP members, as the company offers discounted AARP rates and coverage tailored to senior citizens.
Liberty Mutual: Ideal for Existing Customers
Liberty Mutual offers gap insurance that ranges from $5-$15 per month, which can be more expensive than coverage from some competitors. Liberty Mutual gap insurance is a good choice for drivers who already have their car policy with Liberty. Since it is usually only a minor portion of your premium, it’s more cost-effective to concentrate on the price of your entire policy.
Progressive: Third-Largest Insurance Company in the US
As the third-largest car insurance company in the United States, Progressive offers gap insurance that can be added to collision and comprehensive coverage. While it’s sometimes advertised as “loan/lease payoff insurance,” it works similarly to other gap insurance policies by minimizing the ‘gap’ between the actual cash value of your vehicle and the amount you owe on it. However, Progressive’s gap insurance is limited to 125% of your vehicle’s actual cash value and may or may not cover your deductible, depending on your claim.
Allstate: Covers Vehicles up to $100,000
Allstate offers gap insurance in most states, also known as guaranteed asset protection insurance. Covered losses are limited to $50,000, but that’s a higher amount than many of Allstate’s competitors. Allstate’s gap insurance covers deductibles up to $1,000 as well, reducing your out-of-pocket expenses in the event of a total loss. If you crash a newer vehicle, then you might receive close to the full value of that vehicle in compensation without paying the deductible. Allstate’s guaranteed asset protection insurance can be bought from dealers nationwide and covers vehicles worth up to $100,000.
American Family: Independent Agents Required
American Family offers gap insurance to customers in 19 states, but you must first have an auto insurance policy with them that has collision and comprehensive coverage. You can purchase American Family gap insurance through independent agents, like other American Family insurance products.
Amica: Award-Winning Customer Service
Amica has been ranked as one of the best car insurance companies in America in recent years, receiving the highest rating in J.D. Power’s 2019 customer satisfaction report for the New England region. Amica’s gap insurance works similarly to the gap insurance offered by other companies listed here, covering the difference between the value of your vehicle and the amount you owe.
Nationwide: Optional Add-On Available
Nationwide is another major insurance provider that offers gap insurance as an optional add-on available on certain vehicles. Nationwide’s gap insurance covers